Netflix has raised its monthly subscription prices in the U.S. and Canada by $1 and $2, depending on the plan. The increase aims to help pay for new programming to compete in the crowded streaming TV market.
The basic plan, which only allows one user to stream at a time, has increased by $1 to $9.99 per month.
The standard plan, which allows two users to stream simultaneously, increased by $1.50 to $15.50 in the U.S. Prices also grew in Canada, where the standard plan climbed to the same amount and now costs C$16.49.
The premium plan, which enables four streams simultaneously, increased by $2 in both countries. U.S. subscribers will pay $19.99 per month, and Canadians will pay $20.99.
Although Netflix occasionally increases prices, it remains one of the top streaming platforms with 213.5 million subscribers, 74 million in the U.S. and Canada.
It’s the first rise since October 2020; this increase will be applied to new customers. While old customers will realize the increase in prices when they receive the coming monthly bills.
“We understand people have more entertainment choices than ever, and we’re committed to delivering an even better experience for our members,” a Netflix spokesperson said.
“We’re updating our prices so that we can continue to offer a wide variety of quality entertainment options. As always, we offer a range of plans so members can pick a price that works for their budget,” the spokesperson added.
Netflix is harshly competing with companies seeking to attract viewers to online entertainment. Disney+, HBO MAX, Amazon Prime Video, and Apple TV+ are among the competitors flooding billions into new programming.
At $15.49 per month, the standard U.S. plan from Netflix now costs more than competitors. HBO Max, owned by AT&T, is currently offering an $11.99-a-month promotion for 12 months.
The price of Disney+ is $7.99 a month or $79.99 a year.
The streaming platform has obtained new customers despite prior price increases. That shows its users are willing to accept higher costs, Evercore ISI analyst Mark Mahaney said.
“This is evidence that Netflix has pricing power,” Mahaney said.
Netflix had said it would spend $17 billion on programming in 2021. The company has not disclosed spending for 2022.
The company’s next subscriber report is due Thursday, when Netflix posts quarterly earnings. Analysts project the company will report 8.5 million new sign-ups from October through December, according to Thomson Reuters I/B/E/S data, bringing its global subscriber base to 222 million.